Need for sustainable infrastructure

The African Development Bank (AfDB) emphasizes that Madagascar must accelerate reforms in the energy sector. According to the institution’s 2024 country report, the goal is to enhance the competitiveness of the country’s economy.

The restructuring of Jirama, Madagascar’s national water and electricity company, is the main focus of these reforms. However, they also call for the establishment of a regulatory body for the electricity sector and the promotion ofrenewable energy sources.

According to the AfDB, Madagascar’s transport and energy infrastructure network is outdated and underdeveloped. The energy sector is characterized by low electricity availability, at just 33 % in 2023. This is below the African average of 50.6 %. Larger-scale investments in high-value-added sectors are significantly hampered by this situation. Therefore, it is crucial to provide the country with sustainable infrastructure, according to these recommendations.

The African Development Bank is not the only institution emphasizing the importance of energy sector reforms. The World Bank has also proposed reforms within the framework of the 2023-2027 Country Partnership Framework (CPF), suggesting a three-tiered approach. The International Monetary Fund (IMF) also recognizes the importance of reforming the energy sector, particularly the overhaul of Jirama. According to the IMF, the lack of structural and governance reforms would continue to strain public finances and result in a loss of confidence and foreign investment.